Algeria’s social situation remains stable as President Bouteflika was elected for his fourth term in office. The government presented a new five-year plan that once more aims to diversify the economy away from the hydrocarbon sector.

Algeria’s hydrocarbon-based economy is facing rising competition from the recent shale gas boom in the US, but thanks to ample fiscal reserves, the impact on the country has been limited so far. Its social climate will likely remain stable, even if President Bouteflika should be re-elected next year.

Growth slowed in Algeria on account of reduced energy production and weaker demand from Europe. Still, due to an expected increase in oil production and further economic diversification, we expect growth rates to average 5% in the coming years.